KULR

Good afternoon, everyone. Thank you for joining. On our last earnings call, we told you 2026 will be measured by product revenue growth, gross margin improvement, and cost discipline. Q1 showed progress against each of these priorities. Total revenue grew 98% year-over-year to $4.8 million compared to $2.4 million in Q1 2025. Product sales grew 84% year-over-year to $2.1 million. Overall blended gross margin was approximately 29%, up from 8% of Q1 2025. Product sales gross margin was 26%. Total loss from operations decreased approximately 22% year-over-year. As we move from platform development into production scaling, we signed a new lease for additional 25,000 sq ft of manufacturing space to support new battery production lines and high volume customer programs.

We remain in solid financial position with approximately $19 million in cash as of today and approximately 1,085 Bitcoin in our treasury. We're committing all of our financial resources to our battery business and not acquiring any Bitcoin with cash. The only Bitcoin acquisition is through our existing BTC mining contracts. One quarter does not make a turnaround, but Q1 is evidence that the vision and discipline we commit to for 2026 is starting to translate into measurable results. KULR is beginning to scale its battery business with better cost discipline and improve operating leverage. The core objective of 2026 is straightforward. Scale the KULR ONE platform to build more batteries, sell more batteries while converting customer traction into margin-accretive revenue. Let me start with KULR ONE Air.

Before walking through the program updates, I want to remind everyone why KULR ONE Air is positioned the way it is. On our last earnings call, I explained that the high growth markets KULR serves, autonomous platforms, direct energy systems, and digital infrastructure share one common technical constraint, power density. Drones, robots, and other autonomous systems do not need batteries that simply store energy. They need batteries that can deliver power at 5 to 20 times the discharge rate of a standard battery, sustain that output through repeated high demand cycles, and manage heat generated without failure. That's the engineering problem KULR ONE was built to solve, and it's the reason why our platform is gaining traction we're able to walk through. Power is the wedge. Every program update that follows is downstream from the core advantage.

KULR ONE Air continues to gain strong traction with U.S. and NDAA-compliant drone manufacturers. Our S3P lift battery is seeing broad adoption. In this quarter, we expanded to lift pack family with additional configurations designed specifically for long duration flight applications. We've also advanced the KULR ONE Air power class for agriculture and heavy lifting applications. On the BMS side, we're on track with a customer for 6S, 12S, and 18S battery management systems targeting large UAV platforms. These are high volume, high demand applications, and KULR is well positioned to serve them. We've also completed design of mil-spec EMI-resistant BMS for drone-based defense applications. Customer development activities is increasing across defense, aerospace, space, and unmanned systems. We're seeing especially strong growth in our UAS battery programs. Existing customers are launching new drone models that require entirely new battery systems.

We have also expanded the platform's reach into 2 important directions, into humanoid robots, where we are now engaged with 2 customers, and into large class 2 and class 3 drones. Working with a broad base of battery cell providers in cylindrical, pouch, and prismatic format is central to building out the KULR ONE ecosystem. The same platform architecture paired with the best available cell technology is what gives KULR ONE a roadmap that extends well beyond current production configurations. KULR ONE Air is now actively exploring configurations with NDAA-compliant solid state and lithium metal battery cell providers capable of exceeding 380 watt hour per kilogram. I'm very excited about these developments. The same engineering discipline build the architecture first, then bring the best cell technology to it, is what defines our work in space in Triton, which I'll cover next.

On the space side of our operation, I wanna start with the point that we made in our last earnings call. KULR ONE Space is not just a product line, it's the program that sets the performance standard for the entire KULR ONE portfolio. Space operates in an environment where battery failure is not recoverable. Every performance requirement met in a spacecraft, propagation resistance, thermal stability under extreme conditions, certification under scrutiny raises the engineering baseline that KULR ONE Air, MAX, and our maritime platforms inherit. Customers in defense drone, electric aviation, and AI data center programs are buying integrated architecture that has already been qualified in the most demanding operating environments.

With that as context, I'm pleased to report that KULR ONE Space was selected by several additional LEO and GEO missions this quarter. This continues the validation that the platform and the trust our customers are placing in us for mission-critical applications. Our XLT and Reach series batteries remain active deployment across multiple satellite programs in both LEO and GEO. Recent investments in our BMS are enabling higher radiation tolerance and improved current carrying capabilities, both critical for expanded space missions. I also wanna give you a brief update on our KULR ONE Triton, our maritime battery family. Triton extends the same engineering principle I just described, the architecture first, safety first standards developed for space into autonomous surface and subsea systems.

We're developing and testing Triton in partnership with several OEMs, bringing aerospace-grade and Navy 9310 reliability standards to a market where battery failure underwater carries similar non-recoverable consequences. Consistent with the cell partnership theme I covered earlier, we're currently testing Triton across multiple chemistries, solid state, nickel metal hydride, and small format lithium-ion, to identify the optimal configuration for next generation autonomous maritime vehicles. It's an exciting and fast-growing market, KULR's building the right foundation to compete in it. Moving to our data center platform. On our last earnings call, we described the shift underway in the industry. As AI workloads grow and hardware becomes more power intensive, battery backup is moving out of the dedicated UPS room into computing rack itself. A battery operating next to the processor it protects must meet higher safety standards, handle higher voltage, and responds faster than conventional backup systems.

This is the opportunity for KULR ONE MAX is built for. This quarter, KULR attend the Open Compute Project EMEA Summit, where we met with major data center OEMs. Our focus was to license our PPR and thermal management IP for data center BBU applications. The data center market is enormous, and KULR's PPR architecture and thermal expertise give us a technology edge that OEMs want access to. We'll continue to advance the design and optimization of our KULR ONE MAX, our 48 volt high power PPR BBU platform. Progress this quarter includes advances in power conversion efficiency, continued development of our custom distributed BMS, and PPR testing for higher energy 2170 cells. We're targeting edge, AI data center, and telecom infrastructure with this platform. Speaking of telecom infrastructure market, we observed the shift underway in telecom industry.

5G rollouts and rising uptime requirements are pushing operators away from legacy lead acid systems towards lithium ion. At the same time, operators are looking to move battery backup assets off the balance sheet entirely, shifting CapEx from non-recurring revenue assets into lower cost OpEx models with clear total cost of ownership advantages. KULR's position in this market is unique. We're demonstrating to operators that we have a proven, safe, and reliable option to contract the mission-critical DC power as a full service and never have to buy a battery again. Our platform pairs the KULR ONE battery architecture with operational and financial structure operators need to make that transition. On execution this quarter, we delivered production battery pack against our existing supply commitments, and we remain on track with the manufacturing consolidation milestones we outlined on our last earnings call.

Beyond those committed programs, we now have over half a dozen engagements with telecom service providers on KULR ONE battery-as-a-service, a clear sign that the market opportunity that we described in March is materialized. I'd like to address the board changes we announced on April 28th. We appointed 2 new directors, Ben Frank from Microsoft and Mr. Mike Kimel, and at the same time streamlined the board to 3 members, 2 of whom are independent. The smaller, more focused board is itself part of the operating principle message. It reduces SG&A and ensures that every director seat directly contributes to expertise that we need to scale. These 2 appointments are not generic board additions. Each one was able to fill a specific gap that becomes critical as KULR moves from platform development into platform monetization.

Mr. Frank is the Director of Workforce AI Solutions Engineering at Microsoft, where he leads engineering teams supporting large enterprise customers deploying AI platforms within Microsoft's Energy and Resource organization. Microsoft is one of the best technology companies in the world that won its markets by building an ecosystem platform and then opening that platform to broad range of partners, customers, and developers. That's the playbook KULR is running with KULR ONE. The KULR ONE ecosystem is built as follows: Opening the architecture to multiple cell chemistry partners across cylindrical, pouch, and prismatic formats. Build the battery management software electronics to increase customer stickiness to the KULR ONE platform. Pursuing IP license for AI data center BBU applications, and expand the customer base in defense, aerospace, maritime, and humanoid robotics.

Ben Frank brings first hand experience from inside the most successful enterprise ecosystem company of the modern era, applying directly to AI-driven industries that are core KULR end markets. Dr. Kimel has more than 30 years of experience as corporate executive, consultant, and academic, specifically focused on pricing strategies and margin performance. He holds a PhD in economics from UCLA and has previously held senior pricing positions at OmniSource, Toyo Tires, and Sears Holdings. His expertise is perfectly aligned with our 2026 mission: build and sell more batteries for product revenue growth, higher margins, and reduced costs. Dr. Kimel's appointment is how we institutionalize that progress, bring discipline to how we price every contract, how we structure customer engagements, and how we convert revenue growth into durable profitability in addition to top line growth.

Before turning the call over, I wanna share one observation about the way the industry is headed. In recent weeks, a public traded UAV component company has agreed to acquire a U.S. drone battery manufacturer for over $50 million, adding battery capabilities to a portfolio that over the past 12 months has been assembled through separate acquisitions of drone software, motor manufacturing and distribution, alongside a $75 million strategic materials purchase. We view this as validation. The UAV and broader autonomous system supply chain is consolidating around three requirements: NDAA compliance, domestic vertical integration, and a complete component ecosystem rather than a single product. That's exactly the pro-platform that KULR has been building organically with in-house engineering for the last few years. Let me put our position in context.

KULR already operates over 31,000 square feet of vertically integrated R&D and production facility in our headquarters in Webster, Texas. We're adding another 25,000 square feet of manufacturing capacity in Q2. Our portfolio spans NDA-compliant battery packs, custom battery management system and electronics, thermal management IP, and platform architecture qualified across drone, space, maritime, AI data center, and telecom applications. We engineer the battery cell partnerships, the cell agnostic architecture, the BMS, and the safety system together, and we're doing it for end markets that extend well beyond UAVs alone. When the industry is paying over $50 million for a battery pack manufacturing operation for UAV, it tells you what the market now believes domestic vertical integrated battery capabilities can be valued at.

The market will be moving and evolving towards an ecosystem platform that KULR has been investing and building for multiple end markets for many years. We're focused on building more batteries and selling more batteries. Now back to you, Stuart.

All right. Thank you, Michael. Let's pivot into the investor questions that have been sent in. Here is the first question, Michael, and it is: What were the primary drivers of Q1 2026 revenue, and how should investors think about revenue visibility for the remainder of 2026?

Cost reduction is already visible in Q1 numbers. R&D expense declined 28% year over year. SG&A declined approximately 9%. Total operating loss declined 22% year over year. We'll be continuing to be more disciplined about our cost structure while investing our growth. As I said in the prepared remarks, our appointment of Mike Kimel is aligned with that strategy. With his expertise in price, margin, and profit optimization, we'll bring discipline to how we price every contract, how we structure customer agreements, and how we convert revenue to durable profitability in addition to top line growth. Yes. Cost reduction is already visible in the Q1 numbers. R&D expenses was down 35% year over year. SG&A declined 8% year over year.

I think we can do a lot more on that. The total operating expenses, excluding the $500,000 credit loss, declined actually 24% year over year. We will continue to be more disciplined on our cost structure while investing in our growth. As I said in the prepared remarks, our appointment of Dr. Mike Kimel is also aligned with that strategy. With his expertise in pricing, margin, and profit optimization, we'll be bringing discipline to how we price every contract, how we structure customer engagements, and how we convert revenue growth into durable profitability in addition to top line growth.

All right. Here's question number 3 then. How many KULR ONE Air programs are moving from prototype or development work into production, and what does that imply for the second half of 2026 revenue visibility?

Yes. Multiple KULR ONE Air programs are in transition. The S3P lift pack has been moved to broad adoption, as it's in production now. The expanded lift family with the long duration configurations is moving from design into quantification with customers. Also on the BMS side, the 6S, 12S, and the 18S systems for large UAV platforms are on track with customers. Our mil-spec EMI resistant BMS design is complete. Two humanoid robot customers were added in Q1, and existing UAS customers are launching new drone models that require new battery systems at all times. We haven't actually disclosed kind of a program by program count, but underneath all these activities, that's what's gonna drive second half of 2026 rev profile.

All right. Speaking of drones, here's a question about that. How is demand developing for KULR's defense and drone battery solutions? Are defense related programs becoming a larger portion of the company's near-term opportunity?

Yes. Defense demand is definitely accelerating from what we can see. Customer development activities is increasing across the defense, aerospace, unmanned systems. The conversation we're having with defense customers is more about volume and timeline. It's all about execution on our side now to deliver to these customers. Defense and defense adjacent programs have really become a larger part of our near-term opportunity. Our work on the NDAA compliant battery cell partnerships, including the emergent solid state and lithium metal suppliers, is really exciting for us, and that's gonna play a increasing role for these customers.

What progress has KULR made with domestic battery supply? Texas-based manufacturing and NDAA compliant battery systems for government and defense adjacent customers.

Yes. We have been developing a full NDAA compliant ecosystem for the KULR ONE battery platform for a while now. From battery cell suppliers, you know, in cylindrical pouch prismatic format to solid state and lithium metal chemistry, to BMS, also to electronic systems supporting all the batteries. These are all around NDAA compliance, just like our battery pack will be all made in, you know, will all be made in Texas. That is definitely a core part of our strategy.

Very good, Michael. The next question talks about gross margin. It says product gross margin was low single digit in 2025. What progress did KULR make in Q1 towards improving margins? When should investors expect improvement to become visible in the financials?

Yeah. Q1 is an example of that our gross margin at 29% for overall blended and also product sales margin about 26%. One quarter doesn't make it a trend or complete or complete turnaround story. That I do believe that we're on the right track to execute our strategy for 2026.

Is the automated production line still on schedule for the second half of 2026? What impact could it have on production capacity, labor cost, yield consistency and gross margin?

Yes. The new production lines will be installed at our new 25,000 sq ft facility in Q2, and we expect that to start production in Q3 of this year. We will have capacity to produce 10,000 battery packs per month, and expect the unit economics for our batteries to go down and therefore improving margins.

All right, well let's talk more about those 10,000 battery packs. KULR ONE Air was highlighted as the company's highest momentum platform with a target of approaching 10,000 battery packs per month in the second half of 2026. Are customer qualification schedules and production timelines still on track?

Yes. Again, another question around KULR ONE Air and our production schedule, which I think a lot of investors really care about. Yes, we have the new facility now. The new production lines will be installed and operational in Q3. I would also say that there is a lot more going on behind the scenes than just the production lines themselves. We now have our own copper busbar laser cutter in-house, that really dramatically lowers our lead time to get these really high performance components made in-house and also lower our cost. We're putting a UN 38.3 certification infrastructure in-house, all the equipment in-house, so that we can build, qualify, ship batteries very quickly to customers and also lower the cost.

You know, all around, we've been making significant investment in our infrastructure to make the best one-stop shop in the U.S. for all these high performance batteries.

All right, Michael, here's our final question for this call today. How should investors think about cash usage, working capital needs and capital allocation priorities for the rest of 2026?

Yes. It is, for us, it's all about building more batteries and selling more batteries. Our cash usage will be CapEx for equipment and facility that I talked about. Working capital for inventory, SG&A, which we are on path to reduce the cost on that. Also continue to invest in our people to build the best team in the industry, to deliver the best product for our customers at a very good value to them. This is how we're gonna win.

Well, as mentioned, that was our final call or our final question for the call today, I should say. I wanna thank everyone for joining us today. More than that, I wanna thank the shareholders for their continued support and for sending in their questions throughout the quarter. Of course, our gratitude to the team at KULR Technology Group. Michael, thank you so much for your time here today. With that, we will turn the call over to the operator.

Thank you. This does conclude today's webcast and conference call. You may disconnect at this time and have a wonderful day. Thank you once again for your participation.

Welcome everyone to the KULR Technology Group fourth quarter and full year 2025 earnings call. I'm your host today, Stuart Smith. In just a moment, I'm going to be joined by the Chief Executive Officer for the company, Michael Mo, as well as the Chief Financial Officer for the company, Shawn Canter. Both of those officers will be giving their opening remarks, and that will be followed by a question-and-answer section with management. Again, we wanna thank you for those questions. Now, before I begin, I would like you to listen to the following safe harbor statement. This call contains certain forward-looking statements based on KULR Technology Group's current expectations, intentions, and assumptions that involve risks and uncertainties. Forward-looking statements made on this call are based on the information available to the company as of the date hereof.

The company's actual results may differ materially from those stated or implied in such forward-looking statements due to risks and uncertainties associated with their business, which include the risk factors disclosed in KULR Technology Group's Form 10-K, filed with the Securities and Exchange Commission on March 31, 2026, as may be amended or supplemented by other reports the company files with the Securities and Exchange Commission from time to time. Forward-looking statements include statements regarding the company's expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as anticipate, believe, could, estimate, expect, intend, may, should, and would, or similar words. All such forward-looking statements that are provided by management on this call are based on the information available at this time, and management expects that internal expectations may change over time.

These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, the company assumes no obligation to update the information included on this call, whether as a result of new information, future events, or otherwise. Now, with that, I'm going to turn the call over to Michael Mo, Chief Executive Officer of KULR Technology Group. Michael, the call is yours.

Thank you, Stuart. Good afternoon, everyone. Thank you for joining. 2025 was a difficult year for our shareholders and for our company. Share price declined significantly, and we recorded a net loss of approximately $62 million. The majority of this loss was driven by one-time and non-cash items, but it was still a loss. Our investors, shareholders, internal team members, and I all felt the effects of this loss. We recognize the impact this has had, not just on our investors and shareholders, but also on our employees and partners who are deeply invested in our success. I feel that way alongside all of you. I want to acknowledge this directly. Equally as important, I want to separate what affected performance in 2025 from what matters most to the business going forward.

In 2025, KULR continued to grow and invest in its core business, the KULR ONE battery platform for energy storage systems. Adversity brings clarity. It sharpens our focus, reinforce our discipline, and remind us exactly what must be done. We're taking these lessons forward with urgency and intent. Our foundation is strong, our direction is clear, and we're committed to executing with precision and accountability in 2026. What I wanna do today is go through what we built in 2025, what we believe is the right foundation, and what realistic 2026 growth execution looks like. KULR designs and builds advanced battery systems for autonomous platforms, digital infrastructure, electric transportation, and space exploration. KULR ONE is our battery platform. Our progress in 2026 will be judged by core battery revenue growth and improvements in gross margin as volume and automation increase.

The mission for 2026 is clear. Eliminate distractions and execute with discipline. Our singular focus is to build and sell more KULR ONE batteries. That's the work, and we will do it relentlessly. I would now like to walk you through some of the 2025 financial reportings and the situation surrounding them. Shawn Canter will provide a full financial summary during his portion of the call. Under GAAP accounting, KULR recognized an unrealized mark-to-market adjustment of $13.8 million on its Bitcoin holdings for 2025. The adjustment reflects the change in Bitcoin price at the end of 2025. While this is an expense, it's not a cash expense. We have maintained our Bitcoin treasury of approximately 1,082 Bitcoins without selling any coins. We invested in and formed a distribution relationship with a private Eskom company.

In late 2025, that company filed for insolvency. We took the full write-off of approximately $6.9 million. Clearly, this investment did not work out. The investment and the distribution relationship with this entity have been ended, and the full account is in the 10-K. The lesson is clear. We must be disciplined in how we allocate capital and resources. Prioritizing the growth of our core battery platform and focusing on opportunities where we have greater operational control, strong commercial visibility, and direct alignment with the strategic priorities. Battery platform revenue, which is product sales plus contract services, was $7.3 million in 2025. That's the commercial baseline we're scaling from in 2026. Revenue was $16.1 million, up 51%. Most of that growth came from Bitcoin mining and battery research grant dollars.

The number that matters most to us in 2026 is the battery platform revenue. That's the business we're building KULR ONE around, and that's where we need to demonstrate growth. $7.6 million is where we start. I would also like to address the product sales gross margin of 1% in 2025. KULR ONE gross margin at current production volume reflects the economics of an early-stage manufacturing ramp. Three factors are driving the current cost structure. First, material pricing at current volume is high. Second, fixed facility costs are spread across a production base that has not yet reached high throughput. Third, each new customer program carries engineering and design costs that are concentrated in early production runs before volume scales. As programs mature and volume increases, those program level costs will be absorbed across a larger number of units.

All three of these factors compress margin at the start of a production run. They will improve as volume grows. To address these, three actions are already in motion. First, programs that began as early prototypes are transitioning to production. Many KULR ONE Air drone battery programs are moving along that curve. Each program that crosses from prototype to volume production shifts from a cost center to a margin contributor. Second, we're installing an automated production line in second half of 2026. Automation reduce per unit labor costs and improves yield consistency at scale, both of which will directly impact gross margin. Third, the KULR ONE platform itself is maturing. As more programs are built on the same modular architecture, engineering and design work required to onboard new customers decrease. That ratio continues to improve as platform accumulates application experiences across defense, aviation, telecom, and data center use cases.

In summary, we do not view 2025's margin profile as the end state of the business. We view it as the current economics of low volume production before programs mature, automation's in place, and production volume grows. What we built in 2025 is the foundation for our growth in 2026. Our headquarters facility is a vertically integrated battery production center from design, prototyping, cell screening, qualification tests, to volume production. We're working with domestic battery cell suppliers to strengthen our NDAA compliance supply chain, and our customer base has grown across six diverse industries. We have an experienced and dedicated team, solid financial resources, and a broad customer base to grow our business. We have learned the difficult and valuable lessons. We're now focused on execution. Ship more batteries. You may ask the question, why now? Why 2026 is the year for change?

High-growth markets that KULR serves, autonomous platforms, direct energy systems, digital infrastructure, they all share a common technical constraint, power density. The demand for high-power battery pack has emerged, and that's the biggest growth driver for us. The requirement is not simply to store more energy, but to deliver at higher C-rates than a standard battery. Oftentimes, this must be done in challenging environments that include extreme temperatures, high G-force, vacuum conditions, and underwater pressure without thermal failure. That's not a commercially available battery problem. That's a specialized battery problem. It requires a battery architecture specifically designed for high power and thermal stress operation. Simply put, these customers often cannot rely on off-the-shelf battery packs. They need high performance, safety, and reliability all in one package that can deliver fast at commercial prices. KULR ONE is built to that specification.

It starts with building the right architecture and then select the right battery cell partners. KULR ONE is a modular and customizable architecture to meet customer needs across multiple end markets. We currently have over 30 active customer development programs in KULR ONE Air, KULR ONE Space, KULR ONE Guardian, and Triton, which is our new maritime platform. Those programs are at different stages, from evaluation to development through more advanced commercialization work. They represent a broad pipeline of revenue growth for KULR ONE as we move these customers from design into production revenue in 2026 and beyond. KULR's cell partnerships reflect the same focus. We have worked with both Amprius and Molicel for a long time. They focus on high power and high energy density batteries.

Those partnerships are a deliberate long-term strategy to maintain access to the most capable battery cell technology available as power density requirements with KULR's markets continue to advance. The combination of KULR ONE system architecture and advanced power cells from our partners give our platform a development roadmap that extends well beyond the current production configurations. Next, I'll give you an update on our KULR ONE Air program. KULR ONE Air, which was launched last year to support the drone industry, is now expanded beyond just air-based autonomous systems. Just in the KULR ONE Air category, we have over 20 active engagements to develop specialized battery systems for many high-profile unmanned systems companies that operate in the air, ground, and maritime markets.

The intensive work accomplished in 2025 to ramp our engagement with these demanding customers will start to become apparent in 2026 as their programs and system evolve from development to deployment. Let me share with you why KULR ONE Air is the right platform for this market. Autonomous systems like drones and robots operate by executing rapid and high-intensity physical action. Their motors accelerate at takeoff, gimbals stabilize under heavy load, sensors are firing at the same time, and their control systems respond in milliseconds. Each of these action demand a large amount of current and power delivered instantaneously. Energy batteries, the kind that optimize for energy density and releasing it gradually over a long period of time, cannot respond fast enough and sustain the discharge rate these actions require without overheating or collapsing the voltage. A power battery is designed around the opposite priority.

It's built to deliver power at 5x to 20x faster than energy batteries. It also needs to sustain that output through repeated high-demand cycles, and it needs to manage the heat generated by the power without failure. For autonomous system where the motor, the sensors, and the computers are all cranking at peak current at the same time, only a power-optimized architecture can keep up. The engineering challenge of a power battery is not simply to build a bigger or stronger version of an energy battery where heat and thermal stress is manageable. For power batteries, heat dissipation becomes the primary engineering constraint. The design needs to be lightweight enough for the platform to fly and high component and manufacturing quality to sustain the performance.

For example, a single defect in welding and soldering joints will result in such a high-energy battery creating a resistance point that at high discharge rate generates enough localized heat to drive the entire pack into thermal runaway. KULR ONE addresses each one of those constraints through a combination of engineering expertise, proprietary technology, thermal control, component integrity, and build precision. That's what separates KULR ONE batteries that perform in the field from ones that fail under operational load. Our current engagements span agriculture, survey, law enforcement, defense drone programs, and surface and sub-sea maritime vehicles. The breadth of the applications reflects the platform's configurability. It's the same KULR ONE architecture adapted to the specific power, weight, and certification requirements for each platform. KULR has shipped thousands of these drone battery packs to date.

We're engaged with two of the leading unmanned aerial system companies in the United States, with a combined production volume target to approach 10,000 packs per month in second half of 2026. These are active engineering partnerships with production timelines, pack configuration, and qualification schedules already in place. Another point, another important point I'd like to make is about supply chain resilience, namely NDAA compliance. That stands for National Defense Authorization Act. The NDAA compliance is a procurement requirement for government and defense-adjacent customers. KULR entered a joint development collaboration with Hylio to design, prototype, qualify, and manufacture NDAA-compliant battery systems in Texas. Hylio is a Texas-based designer and manufacturer of drones for agriculture and public sector programs where NDAA compliance becomes important. Both the batteries and the drones are made in the United States. Next, I'll give an update on our other KULR ONE programs.

KULR ONE Space and KULR ONE Guardian are the two programs that set the performance standards for the entire KULR ONE portfolio for both operating environments where battery failure is not recoverable: human spaceflight, deep space missions, and active military operations. The engineering standards that we develop for these programs are what the rest of the KULR ONE platform is built on. Every performance requirement met in the spacecraft or a combat system, propagation resistant, thermal stability under extreme conditions, certification under scrutiny, raises the engineering baseline that KULR ONE Air, Max, and Triton inherit. Customers in defense drones, electric aviation, AI data center programs are buying into this architecture that has already been qualified in the most demanding operating environment. KULR continues to see adoptions across the space sector. The XLT and the Reach series batteries are in active use across multiple satellites in both LEO and GEO applications.

The Reach series currently is in multiple unit deployment on four partner satellites. Next, I'll talk about what are the competitive advantages of the KULR ONE platform. The number one competitive advantage for the KULR ONE platform is the performance, safety, and quality standards the platform was built to. KULR ONE's core IP originated by the work we've done with NASA Johnson Space Center. The architecture was designed for human-rated space flight applications, environments where battery failure is not a recoverable event. Zero propagation failure, asset propagation containment. That heritage is the engineering foundation that makes KULR ONE the correct choice for applications where performance and safety are both non-negotiable. A perfect example of the advantage is our partnership with Robinson Helicopter Company. Robinson Helicopter Company has manufactured more civil helicopters than any other company in the world in its 50-year history. They have manufactured more than 14,000 helicopters.

Their procurement standards for safety-critical systems are established and rigorous. They evaluated KULR ONE and selected to be their next electric aviation platform. That decision is important because it further validates the engineering standards KULR ONE was built to. Under this co-development agreement, KULR will design, integrate a lightweight, high-performance battery architecture for the eR66 battery electric helicopter demonstrator. We're building a dual life architecture, which means that each pack is engineered from day one for two use. First, for primary flight cycle and a certified second life energy storage application. This model creates two revenue streams for KULR. The primary use case are rapid organ and tissue transport, emergency response, and short haul operations where zero emission performance and low acoustic signature are operational requirements. Second life energy storage is for industrial and digital infrastructure applications. Execution speed is another KULR ONE advantage.

Not speed as a marketing claim, but speed as a demonstrated and repeatable engineering capability. In November 2025, we received a purchase order for a 400-volt battery system to power a counter-UAV directed-energy platform. Five weeks later, we delivered a complete design package and working prototype. Achieving that timeline was made only possible because of the deliberate engineering foundation we built in 2025, including model-based electrical and thermal simulation, proprietary cell selection, design-for-safety architecture, and in-house integration running electrical, mechanical, and firmware developed all in parallel. This system is scheduled to enter production in 2026. Next, I'll provide an update on the KULR ONE platform for digital infrastructure and AI data center applications. Our digital infrastructure strategy addresses two distinct but related segments, telecom network backup and AI data center power.

Both require battery systems that must perform reliably but in different operating environments. Telecom sites face grid instability across diverse geography, while AI racks increasingly require battery integration closer to the compute equipment itself, rather than rely on centralized UPS systems. Telecom operators depend on the battery backup as a primary protection against grid interruptions. 5G infrastructure rollouts are raising the performance and uptime requirements for those systems beyond what legacy lead-acid installations can meet. In January 2026, KULR was awarded a five-year preferred battery supply agreement from Caban Energy, a Miami-based company that deliver energy-as-a-service to telecommunication operators across 12 countries. As part of that transaction, KULR has taken full control of the battery manufacturing equipment and process, and we've commenced production. Production battery packs were delivered to Caban in Q1 of 2026.

We plan to consolidate full operation into our Texas facility in Q2 to improve efficiency, reduce overhead, and centralize operation as we grow. We now have the supply chain set up for the 48 volt, 100 amp hour battery production, and the focus is to deliver batteries to meet growing Caban demands. Beyond that agreement, we're in active engagements with telecom operators and service providers directly with our KULR ONE Battery-as-a-Service offering. These are separate from the Caban channel and represent KULR's effort to build direct non-recurring revenue relationships in the telecom segment. Data centers have traditionally handled battery backup the same way, with large power systems installed in a dedicated room, separate from the computing equipment they protect. That model is changing. As AI workloads grow and the hardware running them becomes more power intensive, the industry is moving towards battery backup installed directly inside the computing rack.

The battery is no longer just a facility utility. It's become part of the compute infrastructure itself. That shift creates a different set of requirements. A battery that operates inside the rack next to the processor it protects needs to meet much higher safety standards and needs to handle higher voltages and respond much faster than conventional backup systems. At the end of last year, KULR joined the Open Compute Project as the platinum member. OCP is the industry body whose specifications define how hyperscalers and large cloud operators build the infrastructure. Platinum membership places KULR in the working groups writing the next generation of power standards and positions us inside the relevant technical working groups and helps us to build a product in line with where the market is going.

In the same month, KULR created a joint development collaboration with a leading global battery cell manufacturer to develop the KULR ONE Max PBU for AI scale data centers. KULR leads the system design, safety engineering, and certification, while the cell partner supplies the battery cell platform for the life of the commercial program upon certification. The opportunity is significant, and it depends on certification, qualification, and customer adoption timelines. The same trend that is driving rack-level battery demand in large data centers is also driving demand at the edge. AI inference, the process of running AI models to generate response, is moving out of the central data centers into the network itself, closer to the end user. That means that the computer hardware and the battery backup protecting it must operate in telecom facilities, cell towers, and distributed network nodes. The environmental and reliability requirements at these locations are more demanding.

This is where the AI data center opportunity and the telecom opportunities converge. The battery requirements are related, the customers' base overlap, and the KULR ONE is the same architecture to save both. Next, Shawn Canter will discuss financial highlights. Shawn?

Thanks, Mike. 2025 was an important year for KULR. As Mike mentioned, it marked a transition to a scalable product-focused model. Let me touch on a few points from 2025 before we get to the Q&A. KULR generated over $16 million in revenue in 2025. This is a 51% increase over the prior year. As we have previously discussed around our focus on product, our product revenue increased and our service revenue declined. Product revenue was up 39%, while service was down 50%. Again, while we expect to have some service business, we anticipate continued growth to come from the product side of the business as we scale into the large end markets Mike discussed earlier. Product revenue came from 47 customers in 2025. Revenue per customer was approximately $108,000 or 56% higher than 2024.

Services revenue came from 34 customers, the same as 2024. Services revenue per customer in 2025 was approximately $65,000 or 50% lower than 2024. Mike touched on gross margins earlier. We have set out in detail, information about gross margin, R&D, and SG&A in the Form 10-K, filed today. KULR recorded an approximately $62 million net loss for the year. There is an aggregate of approximately $33 million of non-cash expenses on the income statement that contribute to the net loss. These represent almost 55% of it. As Mike mentioned, the largest of these is an approximately $14 million mark-to-market expense due to the decline in the price of Bitcoin. As a reminder, in the second and third quarter, Bitcoin's ascending price contributed a non-cash gain to those quarters' results. Now let's get to the Q&A. Back to you, Stuart.

All right. Thank you very much for that, Shawn Canter. As mentioned, that now takes us into the question and answer portion for our call today. Here's the first question: Can management speak to which markets are seeing the most momentum today, and where early customer interest is starting to turn into repeat business and meaningful revenue?

Yeah, Stuart, I'll take that one. I'll say the KULR ONE Air for the autonomous platforms are the clearest, near-term product, you know, production momentum. It has expanded beyond the airborne drones to surface and subsea maritime applications as well as land applications. We now have over 20 active customer development agreements or, you know, programs, across our KULR ONE Air platform. Thousands of battery packs have already been shipped, and two of the leading drone companies in the U.S. have active production timeline with us, pack configurations, qualification schedules in place, and we're looking at, you know, over 10,000 battery packs per month later 2026. I'll say that's the market has the highest momentum these days.

Thank you for that, Michael. Here's the next question. Could you give an update on where KULR is positioned in the AI data center backup power market, and what investors should be watching for to know whether this can become a meaningful source of growth?

Yes. We start developing our AI data center PBU product in 2025. At the end of 2025, we joined the OCP platform membership, and which positions us inside the working group that writes the next generation of the power standard for these hyperscaler infrastructures. Now we're building products to meet where the market is heading for the next cycle of growth. 2026 is the year that we really need to work with our PBU cell providers on the UL 9540 certification and work with the hyperscaler customers on integration work. I will say that 2027 is the year that we can see revenue opportunities.

Next question. Where do things stand in telecom and energy infrastructure, and what still needs to happen before those opportunities can start contributing in a bigger way? The Caban announcement was a great start.

Yes. We've taken control of the battery manufacturing equipment and process from Caban, and we've commenced production. Production battery packs have been delivered to the customer, and we plan to consolidate that into our Webster facility in Q2 and improve efficiency to reduce costs and also centralize operation as we grow. We now have supply chain set up for the 48-volt, 100 amp-hour battery production, and the focus is now to deliver batteries to meet the customers' needs. In addition, we're in active engagements with telecom operators and service providers, you know, directly to provide KULR ONE batteries as a battery-as-a-service offering that's separate from the Caban channels. We're starting to test the water to offer that as a the battery-as-a-subscription service.

The goal is to lower the total cost of ownership for operators to replace the lead-acid batteries into lithium-ion batteries.

Michael, since KULR is involved in several areas like aerospace, defense, telecom, e-mobility, and data centers, where is management most focused right now, and where will most of the company's attention and resources go over the next year?

Yeah. The focus for 2026 is simple, build and sell more KULR ONE batteries. The management is most focused right now on the KULR ONE Air platform. That's the one that shows the highest growth with our customers. I think I repeated it now that, you know, we have over 20 active customer engagements for the autonomous systems for air, land, and maritime. We've shipped thousands of the battery packs for the customers, and that this is the one that we see the highest growth in 2026.

Looking at the rest of 2026, what are the biggest goals and milestones investors should be on the lookout for, and what would management consider a successful year?

Well, I think that, you know, across our portfolio, the KULR ONE Space and KULR ONE Guardian products will continue to gain customer traction. As you know, the private space exploration in the DOD, the market is also growing very quickly. The telecom batteries, we're shipping volume to our customers to meet their demands. We have some new telecom operators, and hopefully we'll get contracts in 2026 for battery-as-a-service. You know, keep in mind that these operating engagements can take some time, but I think it could be a very good recurring revenue business for us. The most important is the KULR ONE Air product.

That's gonna ramp in scale with our customers, and I think the baseline is 10,000 packs per month as we get our automated production line going. I think these are the big ideas for our goals.

Okay, excellent. Next question. How stable and repeatable is the KULR ONE platform revenue base becoming?

Yeah. Like I said in the prepared remarks, what has fundamentally changed for KULR in 2026 compared to previous years is that the need for power battery pack has emerged for these very fast-growing new markets, you know, autonomous platforms, digital infrastructure, and direct energy. KULR ONE is engineered from the ground up to serve this paradigm shift. Our customer engagements are now broader industry coverage. The customers are very diversified in different markets. And we also have a lot more customers, and they all have their programs that's running, and we're customizing our solutions specifically for their programs. These customers have their own roadmap to ramp in volume in 2026. That gives us more confidence and build our production capability to serve these customers on schedule.

We're certainly moving to a more stable and repeatable product sales business model in 2026.

All right, Michael, next question is, as space-based AI data centers become more of a long-term discussion point, does KULR see a potential role there given its background in space applications, thermal management, and battery safety?

Well, first of all, I think this is a long-term conversation, and it is not something KULR can focus on in 2026. The space-based AI data center is probably one of the biggest and the hottest idea right now. You know, Elon Musk talked about it. He believes that the best way to solve the difficulties of building AI data center on Earth is to move them into space. At GTC 2026, NVIDIA launched the Space1, their Rubin module, along with their Thor and Jetson platform. These are engineered to deliver, you know, AI performance at for the orbital data centers. You know, on top of that, how to cool chips in space is still an unsolved problem. These data centers will definitely need to use space-proven batteries.

Some of these private space companies that NVIDIA is working with for space AI data centers are already KULR customers. I think there might be opportunities, but not particularly a focus for us in 2026.

Understood. Here's the next question. You have recently announced drone partnerships with Hylio, a backup power partnership with Caban Energy, and a standards body looking to modularize AI data center building blocks. These three initiatives represent a large market opportunity, but how much, if any, will you see in 2026?

Yes, Hylio and Caban are both 2026 revenue contributors. Caban's in production right now and growth for the remainder of 2026. Hylio is an active engineering collaboration right now, and revenue will follow qualification and production milestones as the program moves from prototype to volume. We do expect that the Hylio revenue in H2 of 2026. The AI data center PBU business, as I talked about, it would be more like a 2027 business for us.

Michael, here's the final question for today's call. In regards to your ability to power drones, given the recent developments globally, are you aligning yourself with companies that plan to rapidly increase output as a result?

Yes. You know, KULR ONE Air for drone autonomous platform is the focus for KULR 2026. We have many active engagements for air, land, maritime applications, and many of them will go to production in 2026. We're setting up a automated production line for those platforms, for those batteries, to be in operation in H2 2026. Also related to the drone is the counter-drone direct energy systems. We developed a 400-volt battery for a customer in five weeks time from when we received the PO. That's actually record time for a system like that. These systems will go into production 2026. Another one that's really important is NDAA compliant. That's for domestic, you know, production.

A lot of times that's a structural requirement for government drone programs. This is why we partner with, you know, Hylio, to build Made in USA batteries and drones together. We are very well positioned to serve many of these customers that's growing very fast for both defense and commercial applications in 2026.

Well, as mentioned, that's our final question for today's call. I do wanna point out, as we do on all of these calls, that all you need to do is pull up the press release that came out for this call, which came out March 26, and continue to send your questions in throughout the quarter leading up to our next call. We appreciate all of those who did submit questions for today's call. I would like to thank Michael Mo, CEO for KULR Technology Group, as well as Shawn Canter, the CFO for KULR Technology Group, for joining us here today. That concludes our call, and I will now turn the call over to our operator.

Thank you. This does conclude today's webcast and conference call. You may disconnect at this time, and have a wonderful day. Thank you once again for your participation.

You are in the right place for the KULR Technology Group's third quarter 2025 earnings call set for today, Tuesday, November 18. The call will begin at 4:30 PM Eastern. Please hold on the line. Thank you everyone for joining us here today for the KULR Technology Group's third quarter 2025 earnings call. I will be your host and moderator, Stuart Smith. In just a moment, I will be joined by the Chief Executive Officer of the company, Michael Mo, as well as the Chief Financial Officer for the company, Shawn Canter. After we are given their opening statements, we will have a question and answer section on the call today. But before we get started, please listen to the following safe harbor statement which will cover the statements made on the call today. This call may contain certain forward-looking statements based on the company's current expectations, forecasts, and assumptions that involve risks and uncertainties. Forward-looking statements made on this call are based on information available to the company as of the date hereof. KULR Technology Group's actual results may differ materially from those stated or implied in such forward-looking statements due to risks and uncertainties associated with their business, which include risk factors disclosed in their Form 10-K filed with the Securities and Exchange Commission on 03/31/2025, as may be amended or supplemented by other reports KULR files with the Securities Exchange Commission from time to time. Forward-looking statements include statements regarding the company's expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as anticipate, believe, could, estimate, expect, intend, may, should, and would, or similar words. All forecasts provided by management on this call are based on information available at this time, and management expects that internal projections and expectations may change over time. In addition, the forecasts are based entirely on management's best estimate of their future financial performance given their current contracts, current backlog of opportunities, and conversations with new and existing customers about their products and services. KULR Technology Group assumes no obligation to update the information included in this call whether as a result of new information, future events, or otherwise. Now with that, let me welcome onto the call Chief Executive Officer of KULR Technology Group, Michael Mo. Michael? The call is yours.

Thank you everyone for joining us today. I'm proud to share that KULR delivered our strongest quarter to date. In Q3 2025, we generated approximately $6.9 million in revenue, growing 116% year over year and 75% sequentially from last quarter. Our product revenue more than doubled, showing that our transition from services to a product-driven company is firmly underway. We also strengthened our financial foundation. We have approximately $140 million in cash and digital assets and no debt, following the full repayment of the $8 million Coinbase loan. This strong financial foundation allows us to invest in research and development, growing product production capabilities, expand facilities, and accelerate growth across the KULR One platform. We believe we are at the beginning of a super growth cycle in our energy storage and management business, and this optimism is backed by real results. This summer, we launched KULR One Air, built on the same technology foundations as our KULR One Space and Guardian platforms. This July, we created more than 150 KULR One Air battery SKUs, giving us one of the largest made-in-USA battery portfolios in the market. The demand is growing strong. We have over a dozen late-stage opportunities or signed contracts across unmanned autonomous vessels, drones, direct energy systems, and underwater vehicles, and we're seeing an acceleration in customer engagements. At the same time, we're expanding the KULR One platform into AI data centers and telecom infrastructure with new battery backup units (BBUs) and battery energy storage systems (BESS) products, both of which fit in some of the fastest-growing energy markets in the world. With these growth engines coming online, we expect our energy storage and management business to grow tenfold over the next three years. What sets KULR apart is simple. We deliver faster, deliver with higher quality, and we deliver better performance all at a competitive price point. Customers feel that difference immediately. A big part of the advantage comes from our team and our facility in Texas. We design, prototype, build, and test our batteries in-house, all under one roof, which allows us to move with speed and precision. And to meet the rising demand, we're preparing for our next phase of expansion. In 2026, we plan to grow our Texas headquarters to over 100,000 square feet and scale production from a few thousand packs per month right now to more than 50,000 packs per month, supported by new automated battery production lines. This is an exciting moment for KULR. We have the technology, the team, the balance sheet, and the momentum to be America's trusted energy source for these growing applications. I'm very excited that we are entering a super growth cycle as demand surges for advanced energy storage and management products across our core markets. UAVs, drones, and autonomous robots are scaling rapidly, and the KULR One Air and Guardian platforms meet this demand with safe, high-performance, production-ready propulsion batteries at competitive commercial prices. Space exploration is accelerating in both private and public sectors, and KULR One Space positions us as a trusted partner for mission-critical energy systems built to operate in extreme environments. AI data centers need dramatically more energy, and they need it fast. Our KULR One Max platform aligns directly with the industry's shift towards high-density, high-power, and high-reliability backup battery systems. Telecom networks and critical infrastructures are investing heavily in resilience, driving greater demand for certified high-reliability energy storage solutions. And the US is moving decisively towards a domestic, secure battery supply chain, and our Texas-based design and production operation give us a strong strategic advantage. Let me summarize why KULR is winning. Why we're winning right now. First, speed. Our entire value proposition is built on getting high-performance energy systems to customers faster than anyone else. Because we design, engineer, test, certify, and prepare for production under one roof, we can move from concept to manufacturable products in a fraction of traditional industry timelines. That speed has become a decisive advantage as customers demand semi-custom and high-performance solutions delivered quickly and reliably. Second, quality. KULR's heritage in thermal management and battery safety is a core differentiator. We're 40 AS 9100 and ISO 2001 certified. Customers increasingly view quality and safety not as checkboxes but as strategic factors in selecting long-term partners. Third, performance. We use next-generation battery cells, advanced categorization, and validation processes to ensure every KULR One system delivers consistent high-confidence performance, even in the harshest mission profiles. Our focus on thermal stability and optimization is separating us from legacy pack manufacturers. Fourth, safety. Our engineering platform is built on NASA's space-grade safety architecture, applied across the full KULR One ecosystem. As energy levels rise across all applications, safety is becoming one of the most important buying criteria, and this is an area where KULR has a structural advantage. Fifth, secure supply chain. Every KULR One battery we ship is designed, built, and tested in Texas. Customers want a domestic, transparent, and highly controlled supply chain. KULR provides that, supported by strategically secured components and partnerships worldwide. And finally, customer experience and value. We believe that we have the best team in the industry. Because everything is done under one roof, we deliver fast turnaround, better quality, higher performance, and more competitive pricing than our competition. That combination is building customers' trust, winning their business, and is a major reason why KULR is capturing momentum across the markets we serve. Let me highlight one of the most exciting developments at KULR. The launch of KULR One Air. We introduced this platform in July and immediately positioned us in one of the fastest-growing segments of the electrification economy: the UAV, drone, electric aviation, and autonomous robotics. KULR One Air is a purpose-built, high-performance propulsion battery architecture designed specifically for those next-generation systems. The momentum has been extraordinary. In just a few months, the platform has expanded to over 150 commercial-ready SKUs across multiple cell manufacturers and form factors. That makes KULR One Air one of the largest made-in-USA battery portfolios in the market. And we're entering the market at exactly the right time. The UAV and drone battery market is expected to grow from roughly $1.5 billion in 2025 to more than $2.4 billion by 2030, driven by rapid adoption in commercial operations, public sector modernization, and the rise of autonomous robotic platforms across industries. KULR One Air is built on space-grade engineering heritage, delivering safer busbar and connector architectures, lower thermal rise, and high power performance that the series demands that legacy packs simply cannot handle. This performance profile is resonating strongly with customers who operate in demanding mission environments. Demand is accelerating on every front. Today, we have actively engaged with a broad range of commercial and government customers using drones for inspection, logistics, imaging, environmental monitoring, public safety, and advanced robotics. In every case, operators need high-power batteries that deliver safety, power, and reliability at scale. On the production side, we're scaling aggressively. We're currently producing a few thousand packs per month, and with our Texas expansion, we're targeting 50,000 packs per month by mid-2026. And if demand signals accelerate, which we anticipate, we're ready to scale to 100,000 packs per month and beyond. We have the capital, the talent, the supply chain partnerships, and the facility space to execute. KULR One Air isn't just a product line. It's a platform that leverages our decades-long engineering heritage and opens up a multibillion-dollar market for us. AI is creating one of the largest energy transformations we've ever seen, and KULR is stepping directly into the center of this. We're expanding our KULR One Max platform into two massive markets: data center battery backup units (BBUs) and telecom infrastructure energy storage systems. Across NVIDIA GPU generations, power consumption per server is increasing by about 100x. Rack power is climbing from today's 30 to 80 kilowatts to more than 250 kilowatts in some deployments, and NVIDIA's roadmap is pushing towards one megawatt racks by 2028. At these levels, rack-level battery backup units (BBUs) become essential. NVIDIA's latest GB 300 NBL 72 architecture now bakes BBUs directly into the reference design to manage power spikes, ride through micro outages, and reduce reliance on massive UPS systems. As data centers transition to 800-volt high-voltage DC systems, the whole industry is moving this way, including Meta's open compute project. But with high power comes higher risk, and battery safety is now mission-critical. Operators must meet stringent standards like the UR 9540A as they push for greater energy and higher discharge rates. This is where KULR has a unique advantage. Our space-grade safety architecture makes the KULR One Max platform ideally suited for these AI rack applications. We're designing 21700 bays and 5 amp-hour class BBU systems specifically for next-generation NVIDIA systems, while much of the market is still relying on older 18650 cells under 3 amp-hours. We expect our BBU system to be UR 9540 certified and production-ready in 2026, positioning KULR to compete in this multibillion-dollar fast-growing market. AI is rewriting the energy transition, and KULR intends to be at the forefront of that transition. AI isn't just changing data centers. It's transforming the entire power and thermal landscape. Power and thermal have moved from backroom issues to network-wide operating constraints. We're seeing pressure everywhere: on towers, radio, fiber hubs, central offices, and, of course, inside high-density AI data centers. So it's across the entire telecom infrastructure. Recent incidents are reminding everyone why safety matters. One of the clearest examples came from South Korea, where a battery-origin fire disrupted hundreds of government systems and took nearly a full day to extinguish. Events like this are forcing operators to reevaluate their backup power and thermal protection. KULR's role is to help operators safely increase runtime and energy density as they push infrastructure to its new limits. Near term, we're partnering with established backup power providers to deliver safer and higher energy lithium-ion battery packs and thermal runaway mitigation to existing UPS platforms, especially in space-constrained towers, fiber hubs, and central offices. Looking ahead, we'll need to align with platform players and co-development partners to leverage our safety hardware to integrate with recurring business software-as-a-service business models. More to come in the near future. Let me take a moment to update you on our Bitcoin treasury strategy because it continues to be an important part of how we build long-term shareholder value. As a Bitcoin-plus treasury company, we stay close to the digital asset treasury market, and we remain disciplined. We have not taken on any convertible debt to acquire Bitcoin. Instead, our approach is intentional. We're making incremental and economically sound BTC acquisitions through our mining operations while directing our primary capital towards high-value and high-growth energy businesses. Our mining strategy itself creates additional strategic upside. We focus on projects with renewable, low-cost power, and that puts us in direct partnership with mining hosts who are increasingly expanding to high-power computing and AI infrastructure. These relationships give us a front-row seat in new opportunities where KULR can deliver battery energy solutions, BBUs, and UPS systems to support AI workloads and grid resilience. Through Q3, our mining operations produced Bitcoin at an all-in cost of approximately $102,000 per coin. We continue to evaluate projects where we can lower our average cost of acquisition even further. In short, our Bitcoin treasury and mining strategy is disciplined, aligned with shareholder value, and increasingly synergistic with our move into the AI data center energy markets. Let me give you an update on KULR Vibe, which is becoming another exciting part of our portfolio. This year, we'll be working closely with helicopter OEMs and operators across both civilian and government sectors in the US. Vibration mitigation remains one of the most challenging maintenance issues in aviation. It is often described as more of an art than a science. KULR Vibe is changing that. Our system enables maintenance teams to track and balance aircraft quickly, accurately, and without needing decades of experience. The software learns over time, becoming more precise with each balance on each specific aircraft through its built-in learning algorithm. Now that the government shutdown has ended, we expect our US Army program to resume and advance to the next level. On the commercial side, demand is growing rapidly. To support the civilian helicopter market, we're preparing to launch the KULR Vibe app on iOS in 2026 in partnership with a global aviation leader, making this technology more accessible than ever. Let me give you a quick update on Exia. In just a few months of marketing Exia in North America, we've already deployed more than 30 units across multiple verticals. In retail, Exia is supporting workers in distribution centers of a major North American retailer. In logistics, it's operating inside a national 3PL specializing in oversized and bulky items. For industrial distributors, Exia is deployed across three warehouse locations serving the restaurant sector, and in healthcare, we've been running a successful pilot in a nursing home in Montreal, with highly positive feedback from caretakers. We're preparing to launch a second pilot with a major hospital in the Northeast. The momentum is strong because Exia's seventh-generation architecture delivers the right balance of cost reduction, performance, and safety—a combination that's resonating with industrial customers who need productivity gains without compromising worker well-being. As industries look to empower workers, reduce injuries, and bridge labor gaps, Exia allows us to play a strategic role in the future of the modern, augmented workforce. Next, Shawn Canter will provide financial updates. Shawn?

Thanks, Mike. Overall, the third quarter was another strong quarter for KULR. Our operating activity continues to position KULR for continued growth and future success. With that in mind, I'll touch on some highlights. Revenue grew 116% from the same quarter last year to approximately $6.9 million. Q3 was the highest revenue quarter KULR has ever posted. This grows the streak to the fifth straight quarter KULR has grown revenue over the comparable prior year period. The third quarter also sets another growth record, this one a new trailing twelve months revenue record at $16.7 million. The third quarter grew this streak to the fifth consecutive quarter KULR has set a trailing twelve-month record. For the third quarter 2025 versus the third quarter 2024, product revenue grew 112%, but services revenue was down 74%. Let me make a brief comment on our services revenue. Our services work plays an important role in complementing our products business. But over time, you'll continue to see us focus our resources on products. This reflects our belief that our products business can go after a much larger global market, benefit from economies of scale, leverage our already strong and growing brand awareness, and offers KULR a long sustainable growth trajectory in which to invest. Now let's touch on our operating expenses. In addition to what is in the 10-Q, I'd like to share the trend from the first, second, and now third quarter this year. Both R&D and SG&A have gone down each quarter since the beginning of the year. R&D is down 5.2%, and SG&A is down 13%. Our operating costs reflect the everyday costs to run the business as a public company, find and retain high-quality talented teammates, and make the necessary investments to drive growth in the short and long term. In fact, many of the investments that we've made are bearing fruit and serve as a foundation for the vision that Mike just outlined. We are seeing increases in the number, quality, and size of customer engagements. I'll point out that the payoffs for some of the investments will take longer to realize. It's to be expected that every investment doesn't always play out over a straight line. But we remain confident of their future payoff. One last point on operating expenses. We won't be able to reduce costs every quarter. Our goal is to get to positive operating earnings through strong revenue growth with appropriate investments to maintain the durability of that growth. Now a few points on our balance sheet. At the end of the third quarter, our cash balance was just over $20 million. Our current accounts receivable was approximately $3 million. We held Bitcoin worth approximately $120 million, and our total assets were approximately $156 million. Before I hand things back to Stuart, I'll just add a point to another topic Mike spoke about. We continue to be enthusiastic about the exoskeleton market and technology. Based on our early commercial customer experiences and what we can see in the marketplace, the appetite for exoskeletons appears to be strong. Nike's recent announcement of their own exoskeleton is an example. Notwithstanding that outlook, I do want to state that based on information from German Bionic, we made the appropriate decision to take one-time impairments. We do not anticipate this will materially affect our US commercial sales activity going forward. Overall, we are enthusiastic about another strong positive growth momentum quarter for KULR. Back to you, Stuart.

Alright. Thank you very much, Shawn. So that again brings us to the question and answer portion of our call today. And, Michael, the first question is for you. And here it is. What are KULR's strategic priorities today as a Bitcoin treasury company with operations?

Yeah. Thank you, Stuart. And this is a question that we are often asked, and I'm glad to answer it. Our priorities are focused and deliberate. Bitcoin treasury is an important role for our treasury strategy. But, operationally, we're very focused and anchored in our core energy management and storage business as well as our vibration reduction technologies. So, because we're seeing both areas present strong revenue growth for 2026. And that's where we're gonna focus all of our attention and our commercial efforts on.

Very good. Well, Shawn, the next question is for you. What is the long-term strategy for the Bitcoin treasury and mining operations?

Thanks, Stuart. That's a good follow-up after the prior question about our future. We believe Bitcoin's supply and demand structure supports a favorable long-term pricing outlook. After initially purchasing Bitcoin on the spot market, we shifted in mid-July to growing our position through mining. In addition to accumulating more Bitcoin, mining brings us closer to the data center ecosystem as we explore new opportunities in energy storage solutions. While we're on the topic of Bitcoin, perhaps it makes sense to have a word about Bitcoin's price volatility and even the equity market volatility, which we've all recently seen. We like to maintain a strong cash position and no debt as a buffer to Bitcoin's price and stock market volatility. We don't have any interest payments or debt maturities to worry about. We're focused on growing revenue. We worked very hard to position ourselves to be able to take advantage of volatility rather than to be a victim of it.

Okay. Thank you for that, Shawn. Michael, next question for you. Given the previous reverse split and the ongoing share price pressure, what outcomes have been achieved in terms of institutional participation and market perception, and is another reverse split being considered?

Well, since the reverse split that went into effect in June 2025, third-party data has indicated that the company has more than doubled its institutional ownership. And today, we can say definitively that there is no basis for considering another reverse split.

Alright, Michael. The next question is also for you. Several partnerships, government, military, aerospace, and corporate have been announced with limited follow-up. Can management provide detailed updates, expected and how these programs contribute to revenue and long-term enterprise value?

Well, across government, aerospace, defense, and corporate accounts, we continue to make steady progress on the partnerships that we have previously announced. Many of these partners involve multistage qualification, certification, design, testing, and integration processes. And as you know, those cycles often span several quarters, and also, they are governed by confidentiality agreements that limit the level of program-specific details that we can publicly talk about. As we transition to a product-focused company, these engagements are important because they establish long-term technical and operational pathways for products to get inside of these critical platforms where reliability, safety, and performance matter the most. At the same time, as I talked about in my prepared remarks, it's important to highlight that the future growth engine of the company is now being driven by our KULR One Air product and also the entire KULR One platform, which is seeing significant broader and faster commercial adoption. As we enter 2026, we'll keep everybody up to date on the commercial efforts around our KULR One Max and AI BBU, and also telecom applications as well. These new platforms are expanding our addressable market into multibillion-dollar markets.

Alright. Shawn, previously KULR has issued investor letters. Mike has said he would try to communicate more with shareholders. Is this still a priority? And if so, how will you be doing it?

Sure. Well, as Mike just mentioned, due to the nature of many of our government, defense, and even commercial customers and the programs we work on, we're often limited in our ability to disclose contracts and progress until later milestones occur. With that said, as we've indicated before, we hear our shareholders and their desire for more communications. Early 2026, we will write an investor letter in addition to everything else that we do to communicate. Going forward, at least once a year in an investor letter, we'll share a more intimate account of what we're seeing and doing. We'll use it as a reflection on where we are and a window into what may lie ahead. In 2026, we're looking forward to our next open house at our headquarters in Texas. We're looking forward to attending more events where we can speak about our progress. We're looking forward to increased coverage from research analysts. I guess it's worth noting that, as everybody knows, the analysts independently make those decisions. We don't. And, of course, where we can publicly announce new contracts, customers, and programs, we certainly will.

Shawn, the next question's also for you. What concrete steps is management taking to stabilize the stock price?

Well, Stuart, our primary focus is squarely on accelerating revenue growth in our core energy storage and vibration markets. The investments we've made are showing real traction. As we've mentioned earlier, we are securing meaningful business in autonomous systems and expect additional wins ahead. As Mike mentioned, we're pushing into infrastructure with our market-leading energy storage and management solutions. We also are advancing KULR Vibe towards a scalable, globally marketable platform. It's probably worth noting, also that our Bitcoin treasury strategy has sort of touched on this question too. Both Mike and I have mentioned at the end of the third quarter, we held about $120 million worth of Bitcoin. We have intentionally taken a conservative approach to our Bitcoin holdings. We have no debt or other complex structures on our balance sheet, unlike others who have levered up their balance sheets to acquire Bitcoin and have experienced or perhaps still own the risk of leverage in volatile markets. As Mike mentioned, we believe in the long-term value of Bitcoin and its unique fixed supply and increasing demand characteristics. Individuals, institutions, and governments are buyers of Bitcoin. The regulatory environment has moved from a headwind to a tailwind. Increased domestic and international economic and political macro risk and resulting volatility on global currencies appear to further contribute to Bitcoin demand. Let me put some numbers associated with this just to understand the scale of the demand trend. And I asked AI for some help here. In 2011, there were an estimated 100,000 active Bitcoin addresses. In 2015, an estimated 6 million. In 2020, the estimated number of active addresses increased fivefold to 30 million, and an estimate for November 2025 indicates the number of active addresses to be approximately 60 million. That's a 58% compounded annual growth rate. It's not easy, and one doesn't find every day, or one can find something that grows 58% a year for fourteen years. So simply, fixed supply, strong growth demand trend, all else equal, we think this suggests over time the price of Bitcoin should rise and along with it, the value of our holdings. Historically, we acquired Bitcoin via the spot market, more recently via mining operations, and as Mike mentioned, one of the reasons for this is the strategic position for KULR to both acquire Bitcoin and get insight into the infrastructure energy solutions market. Overall, Stuart, over time, we believe our stock price should reflect the results of our strong operational execution.

Thank you for that, Shawn. And this really dove into that. Here is the next question, and I will direct it back towards you again, Shawn. Given so much that has happened at KULR in the last year or two, how is management viewing these changes in relationship to revenue growth and, ultimately, stock price appreciation?

Sure. Well, that's a great question. A lot certainly has changed over the last couple of years. I guess, again, it's worth stating again, our focus is on growing 2026. We believe that the market demand number and nature of customer engagements and the engagement sizes will show up in scaling durable revenue. From programs that took our batteries into outer space and to the bottom of the ocean, we're now applying those same technologies, insights, and learnings to higher volume programs related to autonomous vehicles covering air, land, and sea. Another example of change that took place over time is our decision to implement and then consolidate our facilities into just one location in Texas. As Mike mentioned earlier, we're already seeing demand signals indicating that we need more space to accommodate the customer engagements and growing programs that we see heading our way. Additionally, as we've already touched on, we're exploring how our products can be applied to even larger global infrastructure markets. Again, all of this to say, we see revenue materially growing in 2026. And as we talked about in the prior question, while we don't predict ours or anyone else's stock price, it would seem that it would stand to reason. KULR's stock price should follow as revenue grows and we gain further scale. Since we're talking about change, I guess I'll add one more observation even though we have touched on it already. Looking at our balance sheet and how it has evolved over the last two years. Today, we have no debt. We have over $100 million in liquid assets. We are seeing real traction across products and markets. We can and are investing in our real durable growth. Thanks, Stuart.

Thank you, Shawn. And Michael, we're gonna close out the Q&A portion with this final question directed towards you, and it is a long one. It's in regards to the KULR Intelligent Data System, which currently generates high-fidelity vibration and thermal telemetry at scale from active battery deployments. And it says it's a multipart question, actually. Will KULR in the future, one, tokenize the aggregated dataset on a public blockchain with verifiable provenance, and two, license access to leading AI labs for training foundation models specialized in battery physics, electrochemistry, and predictive safety? If so, what is the minimum data moat size in terabytes of raw sensor streams that KULR believes would be required to position the platform as the de facto Bloomberg terminal of battery physics? That's in quotes, that last part. And then he has this comment. Thank you again for your vision in building the data backbone of safe electrification. So, Michael, will you handle that one, please?

Yeah. No. Thanks, Stuart. This is actually a really interesting question. Actually, it kind of relates to AGI, artificial general intelligence. It's something like that type of question. You can think about this question or answering this in three buckets. First is how much data you can get from individual models of battery cells and packs. Second is how many of these cells and packs do you have in operation to get the data moat size, terabyte data that this investor is referring to. And third is what you do with that data both as a primary and secondary application for these batteries. We can probably spend hours talking about this in general, but the first point is that some of these proprietary testing and categorization techniques that we have, such as FTRC, IgM, IFC trigger cells, and etcetera, we can get some of the most detailed and quantitative data on thermal runaway and safety behavior on both the battery cells and packs that we're interested in building for KULR battery packs. This will probably not include all the battery cells in the world, but just focus on the cells relevant to our applications and our customers. Then it's to get to scale by deploying as many packs as possible into the field and continuously monitor them. That's where I say the EV vendors will have a tremendous advantage because they have the largest scale deployments, and the EV BMS monitor all the cells. We can do similar with our KULR One battery platform. And that is actually becoming a business model question on, you know, do you sell the battery packs, or do you lease them out and charge for the use of the energy consumption through the batteries as a subscription service? So, I think the shareholder's question is actually leaning towards the second case. So if your business model is energy as a service, then you could have data on primary application usage and potentially second-life applications for these battery packs as well to maximize the lifetime value of these batteries. I actually really believe that energy as a service will be the business model for telecom, for AI data centers, and advanced electric mobility applications. They all have different requirements for the cell performance and lifespan of the batteries. So you can price something for each one of them as a primary application. And then you can eventually take possession of the battery and then apply second-life applications for another industry. And in that case, you can maximize the economic value of the battery packs and also minimize waste. In those applications, the Bloomberg terminal analogy for battery information and an AGI-like monitoring system, I believe, will be the killer app.

Well, Michael, thank you for that. I want to thank both Michael Mo, CEO of KULR Technology Group, as well as Shawn Canter, the CFO of KULR Technology Group. That concludes our call today. And with that, I'll hand the call back over to our operator. Thomas. Thomas, the call is yours.

Thank you. This does conclude today's webcast and conference call. You may disconnect at this time. Have a wonderful day. Thank you once again for your participation.